A good third quarter for Builders’ merchants

The latest Builders Merchant Building Index (BMBI) showed builders’ merchants’ average daily sales to roofers, builders and contractors were up 6.9% in Q3 2017 compared with the same period last year. The top category was Ironmongery (+10.0%). Growth for Timber & Joinery Products was almost in line with merchants generally (+6.7%). With one less trading day this year, total Q3 merchant sales increased by 5.2%.

Average daily sales in September 2017 were 7.9% higher than a year ago. Plumbing Heating & Electrical did best (+12.5%) and Timber & Joinery Products (+7.8%) was in line with total merchants. With one less trading day in September this year, total revenue increased by 3.0% over September 2016.

Year to date, average sales a day were 4.9% ahead of 2016 – up from +4.5% in August. Amongst categories doing better were Ironmongery (+7.4%) and Timber & Joinery Products (+5.3%). Taking one less trading day into account, total sales were up 4.3%

The rolling 12 month period, October 2016 to September 2017, was 5.0% ahead of the same period a year earlier, with Timber & Joinery Products also up 5.0%.  September’s Builders Merchant Building Index was 117.5 (116.1 adjusted for trading days) and all categories except one had indices over 100.

John Duffin, Managing Director Keylite Roof Windows and the BMBI’s Expert for Roof Windows, comments: “Overall BMBI reports growth of around 7% on the previous year when adjusted for trading days. But taking price inflation into account we get a more accurate picture of the market, which is in a current state of limbo – a reflection of the economy. Total UK construction figures are lower, pulled down by infrastructure and industrial, but new housing and RMI have fared better, reflecting the constant demand for new housing, with regional variations.

“The roof window market is growing as housebuilders and homeowners turn empty roof space into habitable living room. Keylite’s own sales of roof windows more than reflect this trend with double figure growth in the period, partly boosted by innovative new windows, however the expected September sales peak was a little lacklustre. This weaker month reflects poor RMI figures for September from the ONS, which reported +0.4% on the year before and -2.0% compared to August.

“Looking at the wider economy, there are warning lights flashing on the high street which reported its lowest quarterly growth rate in four years, with September dipping sharply and economists pointing to inflation, static earnings and Brexit fears as the main culprits.”

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